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 Oracle: Why Oracle bought Netsuite?

Serious Info OracleWell, it is not an IT nor ERP question to answer here , as this question answer  is 100 % a corporate move from Oracle to gain more market share from the cloud ERP solution especially for the SMB (Small medium Business) customers .

Some technical savvy people may think Oracle acquired  netsuite to merge it with Oracle fusion applications -which might be the case in the coming 5-7 years at least not before- but Oracle has many issues with its SaaS business yet to be solved otherwise Oracle will face the same destiny of Yahoo! :D :D .

Oracle in the last 3 years has pushed its fusion SaaS prodcuts to its limits but still facing the following issues:

1- the lack of technical /functional resources to deliver a successful project-that includes consultants/PMs/presales...etc.

2- the lack of Oracle engagement approach that accomplish a win-win situation between the triangle of the project, i.e. Oracle (as the service provider not only the software owner which is the major difference between fusion & eBS), Partner ( at the same time partners must focus on the long run relationship not the quick delivery i will explain why later on ), customer ( he as well must change the way he looks to the solution as not owning a license with a CapEx investment to be an OpEx investment ).

* why Oracle should change its engagment approach?

- well, Oracle Fusion SaaS on the contrary of Oracle eBusiness Suite, the role of Oracle has been changed from the software vendor to the serivce provider which means plus developing the system and make it available for public use, Oracle now has the responsibility to manage the entire IT stack till the end user usage level plus the 2nd, 3rd, 4th level of support as well, which Oracle till now didnot find any acceptable solution from customer perspective (Oracle has ACS &Premium support which cost a fortune :D  but at least they initiate the process).

* Why Partner should change his engament with Oracle/customer in Fusion Projects?

- any Oracle Partner-like any professional service provider get his major cost incurred from the resources allocation in the project, so for eBS projects the partner is always trying to make the most efficient resource allocation - efficient here means the lost number of man-hours to deliver a given task - so if this approach was stable and acceptable from the project triangle in eBS projects it will kill any fusion project and will never achieve the customer satisfaction which by turn will kill Oracle`s entire strategy of moving to cloud and drop its market share in the ERP market and may end the story of Oracle corporate at all looking at the impact of losing the cloud market on other Products families in Oracle.

- in fusion projects, there is a very short pace system updates and the customer is forced to upgrade whiten maximum one year (18 months in some cases) and these upgrades having many impacts on the current solution and the entire solution vision like the Landed cost module which come as a separate module rather having a work around for previous release.

- the partner should have being building his relation with both Oracle and the customer with the same levels and almost with the same objectives because if the partner could not keep up with Oracle updates nor get engaged in the system development itself it will end the future of that partner.

Published on August 14, 2016 by Mahmoud Mansy, Oracle Fusion Project Manager
Spource: https://www.linkedin.com/pulse/why-oracle-bought-netsuite-mahmoud-mansy

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